No one had seen 49-year-old Terry since Sunday's stage between Santa Rosa and Puerto Madryn.
His dead body was discovered after the fourth stage in what was described as a “very inaccessible area” and race organisers have said that the French motorcyclist had made efforts to take shelter and had food and water at the time.
The cause of Terry’s death is unknown and police have launched an investigation to try and discover what killed him.
Terry is not the only person to have been a casualty of the race because British driver Paul Green and navigator Matthew Harrison were taken into hospital after their car overturned on Saturday.
The Dakar Rally began in Buenos Aires on 3 January and ends where it started on 17 January.
